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A restaurant is for sale for $ 2 3 1 , 4 4 2 . It is estimated that the restaurant will earn $ 2
A restaurant is for sale for $ It is estimated that the restaurant will earn $ a year for the next years. At the end of years, it is estimated that the restaurant will sell for $ Which of the following would be MOST LIKELY to occur if the investor's required rate of return is percent?
Option : The NPV is equal to or greater than zero, and the investor would pursue the project.
Option : The NPV is less than zero, and the investor would not pursue the project.
Option : Investor would pursue the project if the holding period were longer than years.
Option : Not enough information provided to answer the question.
Note: Enter the option number as your answer. IF a student's answer was Option the student would enter the numerical number as the answer:
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